Regional value chain opportunities in West Africa following the establishment of the African Continental Free Trade Area

Abstract

The African Continental Free Trade Area (AfCFTA) is expected to be a transformative force for the continent, significantly influencing various economic sectors, especially intra-African trade. Trade is most beneficial when it occurs within structured value chains—integrated systems that enhance value across production, processing, and marketing stages, ultimately leading to greater economic gains. To effectively position African economies within these regional value chains, it is essential to implement tariff and non-tariff liberalization measures along with other trade facilitation initiatives. These efforts should align with broader strategies aimed at integrating production and trade within the African common market. The AfCFTA Agreement supports and complements national and regional initiatives designed to establish and strengthen value chains within national and regional economic communities. This study examines the potential for developing regional value chains in the ECOWAS subregion, considering the implementation of the AfCFTA. This potential is largely driven by Africa’s relatively high competitiveness, the resilience and dynamism of its economies and business sectors, and a favorable pro-business environment.